Asset acceptance loses in IL
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Posted by observer
(205.188.209.144) on March 04, 2004 at 11:18:10:
Looks like a usury defense is available. One of our complaints alleging that a bad debt buyer is not entitled to charge more than 9% interest (with an agreement so providing) or 5% (without an agreement) in Illinois was upheld on February 26, 2004 by Judge Darrah in federal district court in Chicago. Shanahan v. Porick, 03 C 7211 (N.D.Ill.). This involved an Asset Acceptance debt. Bad debt buyers routinely attempt to charge the same amount as the original creditor, even though the original creditor had a charter or license entitling it to charge "supervised" rates and the bad debt buyer does not. The effect is that a lot of what is claimed is not owed, and Interest Act or FDCPA penalties may offset some or all of the alleged debt. The theory is also good in Indiana but there the rate is 21%. EDELMAN, COMBS & LATTURNER, LLC
120 S. LaSalle Street, 18th floor
Chicago, Illinois 60603-3403
(312) 739-4200
(800) 644-4673
(312) 419-0379 (FAX)
Email: [email]edcombs@aol.com[/email]
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